Because insurance policies on mortgages that failed had to be paid off. These insurance policies (credit default swaps) were issued because congress (opposite of progress) forced banks to loan to people who would not otherwise qualify. Thanks to the outsourcing of jobs, adjustible rate mortgages, and bad law, many people couldn’t pay their mortgages. These credit default swaps have gone all over the world (for what reason, I can’t fathom) so almost every bank in the country and many banks (and brokerages and insurance comps) are afraid to lend to each other. So money flow slows down to a trickle and credit supply does too. The economy shrinks until banks feel confident in lending again.

But the only banks (and insurance comp, brokerages) that can do that are the ones who were the recipients of the bailout ….a select few. Mostly, Federal Reserve money center banks. Banks create the money out of thin air, but the Treasury merely makes the physical dollars & coins. If the Treasury was the one to issue currency, we wouldn’t have this problem….but why go by the Constitution ? Grrr.

And we keep electing the SAME A-Holes to congress !!?!?

Plenty of blame to go around.

Nice LOL!

But… I think if they were using cell phones, they’d have double cancer.

tradin dirty
tradin dirty